Services

Consulting in occupational benefits and business management of pension funds

Consultancy services for pension funds und companies developing flexible, appropriate and forward-looking pension scheme solutions, for example those planning to introduce a choice of components, including a range of different investment strategies

• Legal services in connection with adaptations of existing regulations
• Specific ongoing training for foundation board members and other involved persons
• Proposing restructuring measures to remedy shortfalls in coverage [sounds good, but doesn’t reflect German]
• Support in the handling of complex measurements for IV/AI, MV/AM, UV/LAA
• Legal services and support in court cases involving decrees of divorce
• Pre and post services for companies during mergers & acquisitions
• Preparing annual financial statements in accordance with FER/RPC 26.
• Risk analysis based on Monte Carlo simulations to determine necessary risk contributions and fluctuation reserves
• Dynamic projections with Monte Carlo simulations to determine the development of the funding ratio over a period of 5 to 40 years. Developing sensitivity analysis to assess the influence of individual parameters such as the technical interest rate, conversion rate, etc. on the funding ration.
• Long-term development of pension payments to determine maturities of liabilities (modified duration), and determining the impact of changes in interest rates on the funding ratio
• Asset and liability management (ALM) studies
• Profit and loss analysis of risks of death and disability
• Analysis of demographic developments among actives and pensioners

 

Fulfilling the role of expert as per article 52e BVG/LPP

• Periodic review of the fulfillment of the institution’s actuarial liabilities (article 52e paragraph 1 lit a BVG/LPP), highlighting optimization opportunities taking account of any restrictions that are in place
• Checking the compliance of pension fund regulations with legal requirements, particularly in terms of the circle of insured persons, defined benefits and funding requirements (article 52e paragraph 1 lit. b BVG/LPP)
• Recommendations relating to the technical interest rate and demographic situation (article 52e paragraph 2 lit. a BVG/LPP)
• Assessments of whether reinsurance is necessary and the amount of reinsurance required, as well as advice on the best way to reinsure if the pension scheme covers one or more risks itself (article 67 BVG/LPP, article 43 BVV2)
• Proposing measures to resolve underfunding (article 52e paragraph 2 lit. b BVG/LPP) and preparing reports on the efficiency of the agreed measures in case of a shortfall ( article 41a BVV2)

Asset liability management (ALM)

The liabilities of a pension fund are long-term in nature. The investment strategy must reflect this reality by taking into account the liability structure, risk capacity and objectives of the institution. Using our proprietary simulation tools and our combined actuarial and financial expertise, we carry out tailor-made asset-liability studies that enable you to base your strategic decisions on solid quantitative foundations.

Asset-liability analysis

• Joint modelling of asset and liability evolution over a 5 to 40-year horizon using stochastic simulations (Monte Carlo)
• Taking into account the demographic structure of active members and pensioners, expected cash flows and duration of liabilities
• Analysis of the impact of different market scenarios (interest rates, returns, inflation) on the funding ratio
• Assessment of the institution’s risk capacity based on its structure and reserves

Investment strategy optimisation

• Determining the optimal investment strategy based on the institution’s long-term objectives and liability structure
• Sensitivity analyses to assess the influence of key parameters (technical interest rate, conversion rate, asset allocation) on the funding ratio
• Simulation of alternative strategies and comparison of their risk/return profiles
• Quantified recommendations for the Foundation Board, with clear presentation of results and trade-offs

Ongoing ALM monitoring

• Regular updating of projections (quarterly or semi-annually) based on actual market developments and institutional parameters
• Assessment of the adequacy of the current investment strategy relative to updated liabilities
• Early identification of significant deviations and recommendations for adjustments where appropriate
• Supporting the Foundation Board in strategic management with concise reports and tailored presentations

Sustainability and ESG

• Analysis of the relevance and impact of ESG approaches on the institution’s portfolio and investment strategy
• Support in defining and implementing sustainability objectives compatible with fiduciary obligations and regulatory requirements
• Quantitative assessment of the effect of ESG criteria on the long-term risk/return profile
• Guidance for the Foundation Board in formalising a sustainable investment policy

Our approach

• Proprietary tools: our simulation models have been developed in-house by our team of actuaries and mathematicians, giving us full flexibility in modelling and fine-tuning to the specific characteristics of each institution
• Independence: our recommendations focus exclusively on strategy and asset allocation — we do not engage in manager selection or investment controlling, ensuring advice free from any conflict of interest
• All types of institutions: autonomous, semi-autonomous and collective pension funds, with approaches tailored to each structure
• Deliverables: detailed technical report accompanied by a concise presentation for the Foundation Board

Legal advisory

Regulations governing occupational benefits and social insurance are constantly evolving. Pension funds and employers need specialised, independent and pragmatic legal support to safeguard their decisions and ensure compliance.

Working closely with our actuaries and pension fund experts, our legal counsel provides an integrated approach combining legal rigour with a thorough technical understanding of pension-related issues.

Regulatory compliance and adaptations

• Reviewing pension fund regulations for compliance with current legal requirements (BVG/LPP, BVV2/OPP2, FZG/LFLP)
• Monitoring legislative and regulatory developments and assessing their impact on pension funds
• Proposing regulatory adaptations in response to legal changes or institutional requirements
• Periodic review and evaluation of regulatory documents

Drafting and reviewing documents

• Drafting and revising pension fund regulations, articles of association and organisational rules
• Preparing affiliation contracts and agreements between employers and pension funds
• Preparing legal opinions on specific issues related to occupational benefits
• Drafting legal correspondence and communications to insured members

Partial and total liquidations

• Legal support in partial or total liquidation of pension funds
• Preparation and review of distribution plans in accordance with legal and regulatory provisions
• Advisory and assistance during workforce reductions, restructurings or termination of affiliation contracts
• Coordination with supervisory authorities

Pension law advisory

• Legal support on matters relating to occupational benefits, other social insurance branches (disability, accident, military insurance) and employment law
• Preparation of legal opinions on matters relating to occupational benefits and other social insurance branches
• Assisting foundation boards in the exercise of their responsibilities
• Advising employers on establishing or modifying pension arrangements
• Analysis, advisory and legal management of individual insured member cases, including judicial proceedings
• Analysis and advice on complex pension cases: divorce, home ownership encouragement, international situations
• Review of strategic contracts (asset management, reinsurance, administration)

Mergers, acquisitions and restructurings

• Pre- and post-transaction legal advisory on occupational benefits in mergers and acquisitions (M&A)
• Analysis of pension liabilities and identification of related legal risks
• Preparation of specific regulations relating to early retirement or integration of social plans
• Coordination between legal and actuarial aspects in restructuring operations

Data protection (nFADP)

• Analysis of the relevance and impact of the new Federal Act on Data Protection (nFADP) on the processes and governance of your pension fund
• Support in implementing legal obligations: register of processing activities, impact assessments, internal data protection regulations
• Review of existing internal procedures and proposals for necessary adaptations to ensure compliance
• Review of contracts with external service providers and subcontractors (asset managers, administrators, reinsurers) with regard to data protection requirements
• Ensuring internal control system compliance and raising awareness among staff and Foundation Board members
• Acting as data protection advisor for institutions that wish to outsource this function